Tài liệu FINANCIAL REGULATIONS AND RULES OF THE WORLD INTELLECTUAL PROPERTY ORGANIZATION (WIPO)* doc

Definitions Rule 101.3 For the purpose of these Rules: a “Assemblies of the Unions” mean the Assemblies of each Union constituted by a treaty administered by WIPO; b “Coordination Comm

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* Applicable as from January 1, 2008 Amended on October 1, 2009; January 1, 2010; October 1, 2010;

October 5, 2011; and October 9, 2012

In case of differences between the original and the translated versions, the original version shall prevail

ORIGINAL: ENGLISH

FINANCIAL REGULATIONS AND RULES

OF THE WORLD INTELLECTUAL PROPERTY ORGANIZATION (WIPO)*

CONTENTS

CHAPTER 1: GENERAL PROVISIONS 9

Applicability and authority 9

Regulation 1.1 9

Rule 101.1 9

Responsibility and accountability 9

Rule 101.2 9

Definitions 9

Rule 101.3 9

Financial period 10

Regulation 1.2 10

Effective date 10

Regulation 1.3 10

CHAPTER 2: THE PROGRAM AND BUDGET 10

Authority and responsibility 10

Regulation 2.1 10

Regulation 2.2 11

Rule 102.1 11

Presentation, content and methodology 11

Regulation 2.3 11

Regulation 2.4 11

Regulation 2.5 11

Rule 102.2 11

Review and approval 11

Regulation 2.6 11

Regulation 2.7 12

Regulation 2.8 12

Publication of the approved program and budget 12

Rule 102.3 12

Supplementary and revised budget requirements 12

Regulation 2.9 12

Regulation 2.10 12

Supplementary and revised program and budget proposals: review and approval 12

Regulation 2.11 12

Rule 102.4 13

Regulation 2.12 13

Unforeseen and extraordinary expenses 13

Regulation 2.13 13

Rule 102.5 13

Program and budget performance and evaluation 13

Regulation 2.14 13

Rule 102.6 13

Regulation 2.15 13

CHAPTER 3: FUNDS 13

Financing of appropriations 13

Regulation 3.1 13

A ASSESSED CONTRIBUTIONS 14

Assessed contributions 14

Regulation 3.2 14

Amount of assessed contribution 14

Regulation 3.3 14

Request for payment of assessed contributions 14

Regulation 3.4 14

Payment of assessed contributions 14

Regulation 3.5 14

Order of payment of assessed contributions 14

Regulation 3.6 14

Status of payment of assessed contributions 14

Regulation 3.7 14

Assessed contributions from new Member States 14

Regulation 3.8 14

Currency of assessed contributions 14

Regulation 3.9 14

B FEES 15

Regulation 3.10 15

C VOLUNTARY CONTRIBUTIONS, GIFTS AND DONATIONS 15

Acceptance and purpose 15

Regulation 3.11 15

Regulation 3.12 15

Authority and liability 15

Rule 103.1 15

D MISCELLANEOUS INCOME 15

Regulation 3.13 15

Regulation 3.14 15

Reimbursements of expenditures 16

Rule 103.2 16

E RECEIPT OF FUNDS 16

Receipt and deposit 16

Rule 103.3 16

CHAPTER 4: CUSTODY OF FUNDS 16

A INTERNAL ACCOUNTS 16

General Fund 16

Regulation 4.1 16

Working capital funds 16

Regulation 4.2 16

Regulation 4.3 16

Regulation 4.4 17

Trust funds and special accounts 17

Regulation 4.5 17

Rule 104.1 17

Surpluses and deficits; Reserve Funds 17

Regulation 4.6 17

Regulation 4.7 17

Regulation 4.8 17

B BANKING 17

Bank accounts, authority and policy 17

Regulation 4.9 17

Rule 104.2 17

Bank signatories 18

Rule 104.3 18

Exchange of currencies 18

Rule 104.4 18

Remittances to liaison offices 18

Rule 104.5 18

Cash advances 18

Rule 104.6 18

Rule 104.7 19

Payments 19

Rule 104.8 19

Reconciliation of bank accounts 19

Rule 104.9 19

C INVESTMENTS 19

Authority, responsibility and policy 19

Regulation 4.10 19

Regulation 4.11 19

Rule 104.10 19

Rule 104.11 20

Rule 104.12 20

Income 20

Regulation 4.12 20

Losses 20

Rule 104.13 20

Regulation 4.13 20

External borrowing 20

Rule 104.14 20

CHAPTER 5: UTILIZATION OF FUNDS 20

A APPROPRIATIONS 20

Authorizations 20

Regulation 5.1 20

Available period 20

Regulation 5.2 20

Regulation 5.3 21

Regulation 5.4 21

Transfers between appropriations 21

Regulation 5.5 21

Flexibility adjustments 21

Regulation 5.6 21

Commitments against appropriations for future financial periods 21

Regulation 5.7 21

Rule 105.1 21

Administration of appropriations 22

Regulation 5.8 22

B COMMITMENTS, OBLIGATIONS AND EXPENDITURES 22

Authority and responsibility 22

Regulation 5.9 22

Rule 105.2 22

Rule 105.3 22

Checks and balances 23

Rule 105.4 23

Program Managers 23

Rule 105.5 23

Certifying officers 23

Rule 105.6 23

Approving officers 23

Rule 105.7 23

Establishment and amendment of obligations 24

Rule 105.8 24

Review, reobligation and cancellation of obligations 24

Rule 105.9 24

Obligating documents 24

Rule 105.10 24

Ex gratia payments 24

Regulation 5.10 24

Rule 105.11 24

C PROCUREMENT 25

General principles 25

Regulation 5.11 25

Authority and responsibility 25

Rule 105.12 25

Cooperation 25

Rule 105.13 25

Procurement process 26

Rule 105.14 26

Rule 105.15 26

Rule 105.16 26

Rule 105.17 26

Rule 105.18 26

Rule 105.19 27

Evaluation 27

Rule 105.20 27

Rule 105.21 27

Contracts 27

Rule 105.22 27

Rule 105.23 27

Payments 28

Rule 105.24 28

Rule 105.25 28

Confidentiality 28

Rule 105.26 28

Standards of conduct 28

Rule 105.27 28

Rule 105.28 28

D PROPERTY MANAGEMENT 28

Authority and responsibility 28

Rule 105.29 28

Property Survey Board 28

Rule 105.30 28

Sale/disposal of property 29

Rule 105.31 29

Rule 105.32 29

Physical verification of property 29

Rule 105.33 29

CHAPTER 6: ACCOUNTING 29

Accounting records 29

Regulation 6.1 29

Regulation 6.2 29

Rule 106.1 29

Authority and responsibility 30

Rule 106.2 30

Accounting bases and standards 30

Rule 106.3 30

Currency of accounting records 30

Regulation 6.3 30

Rule 106.4 31

Accounting for exchange rate fluctuations 31

Rule 106.5 31

Accounting for proceeds from the sale of property 31

Rule 106.6 31

Accounting for commitments against future financial periods 31

Rule 106.7 31

Writing off losses of cash, receivables and property 31

Regulation 6.4 31

Rule 106.8 31

Rule 106.9 32

Direct and indirect expenses 32

Rule 106.10 32

Financial reporting 32

Regulation 6.5 32

Rule 106.11 32

Regulation 6.6 33

Rule 106.12 33

Regulation 6.7 33

Retention of records 33

Rule 106.13 33

CHAPTER 7: INTERNAL OVERSIGHT CHARTER 33

Internal Oversight Charter 33

Regulation 7.1 33

CHAPTER 8: EXTERNAL AUDITOR 34

Appointment of the External Auditor 34

Regulation 8.1 34

Tenure of office of the External Auditor 34

Regulation 8.2 34

Regulation 8.3 34

Audit standards, scope and operations 34

Regulation 8.4 34

Regulation 8.5 34

Regulation 8.6 34

Regulation 8.7 34

Facilities 34

Regulation 8.8 34

Special examination 35

Regulation 8.9 35

Reporting 35

Regulation 8.10 35

Regulation 8.11 35

CHAPTER 9: INDEPENDENT ADVISORY OVERSIGHT COMMITTEE 35

Regulation 9.1 35

CHAPTER 10: FINAL PROVISIONS 35

Amendment 35

Regulation 10.1 35

Rule 110.1 35 ANNEXES

Annex I WIPO Internal Oversight Charter

Annex II Terms of Reference Governing External Audit

Annex III Terms of Reference of the WIPO Independent Advisory Oversight Committee

CHAPTER 1: GENERAL PROVISIONS Applicability and authority

Regulation 1.1

These Regulations shall govern the financial activities of the World Intellectual Property Organization (WIPO) (hereinafter referred to as the Organization) and of the Unions administered by it They are approved by the General Assembly

Responsibility and accountability

Rule 101.2

All employees of the Organization are obliged to comply with the Financial Regulations and Rules and with Office Instructions issued in connection with those Regulations and Rules Any employee who contravenes the Financial Regulations and Rules or corresponding Office Instructions may be held personally accountable and financially liable for his or her actions

Definitions

Rule 101.3

For the purpose of these Rules:

(a) “Assemblies of the Unions” mean the Assemblies of each Union constituted by

a treaty administered by WIPO;

(b) “Coordination Committee” is the Committee referred to in Article 8 of the Convention Establishing the World Intellectual Property Organization, Stockholm, July 14, 1967, and as amended;

(c) “General Assembly” is the body of Member States referred to in Article 6 of the Convention Establishing the World Intellectual Property Organization, Stockholm, July 14, 1967, and as amended;

(d) “Program and Budget Committee” means the Committee constituted by the General Assembly to deal with program, budget, personnel resources, premises, and finance;

(e) “Appropriations” shall mean the budgetary expenditure authorizations approved by the General Assembly for the financial period against which expenditures may be incurred for purposes specified by the General Assembly;

(f) “Disbursement” shall mean the actual amount paid;

(g) “Employee” is a person engaged by the Organization, under any type of contract, to perform duties;

(h) “Expenditure” shall mean the sum of disbursements and expense accruals; (i) “Headquarters” shall mean the offices of the Organization located in Geneva; (j) “Obligations” are amounts of orders placed, contracts awarded, and other transactions for which goods have been received or services rendered during the current financial period and which will require payment during the same or a future period;

(k) “Officer” is a person employed by the Organization on a fixed-term, permanent, or temporary appointment and whose relationship with the Organization

is governed by the Staff Regulations and Staff Rules;

(l) “Pre-encumbrance” (“Commitment” or “Purchase Requisition”) shall mean an engagement involving an earmarking of funds against resources of the Organization;

(m) “Program Manager” is a senior officer designated by the Director General to

be in charge of one or more programs in the Program and Budget;

(n) “Reserve funds” shall mean funds established by the Assemblies of the Member States and of the Unions, each as far as it is concerned, in which surplus income from fees that exceed the amounts required to finance the program and budget appropriations should be deposited Reserve funds shall be used in a manner decided by the Assemblies of the Member States and of the Unions, each

as far as it is concerned;

(o) “Special Account” shall mean an account for monies not being part of the appropriations but administered by the Organization on behalf of voluntary contributors for specific activities which must be consistent with the aims and policies of the Organization;

(p) “Trust funds” shall mean funds held by the Organization on behalf of other entities;

(q) “Working capital funds” shall mean funds established for providing advance financing of appropriations should there be a temporary liquidity shortfall and for such other purposes as the Assemblies of Member States and of the Unions, each

as far as it is concerned, shall decide

Regulation 2.2

The involvement of Member States in the preparation of the proposed program and budget for the next financial period shall be in accordance with the mechanism that they adopted in that respect

Rule 102.2

The proposed program and budget shall contain:

(a) A statement of financial and human resources requirements by proposed program and by nature of expenditure in a consolidated form for the Organization,

as well as separately for each Union; for purposes of comparison, the expenditures for the previous financial period, the adopted initial budget and the proposed revised budget for the current financial period shall be indicated alongside the resource requirements estimates for the forthcoming financial period;

(b) A statement of estimated income including income from contributions, fees for services rendered under the PCT, Madrid, Hague and Lisbon systems and income classified as miscellaneous in accordance with Regulation 3.13;

(c) A statement of estimated demand for services under the PCT, Madrid, Hague and Lisbon systems, respectively;

(d) A detailed organigram of the International Bureau including names of Directors and Program Managers

Review and approval

Regulation 2.6

The Director General shall submit the proposed program and budget for the following financial period to the Program and Budget Committee for discussion, comments and recommendations, including possible amendments, by the first of July of the year preceding the financial period

Regulation 2.7

The Program and Budget Committee shall review the program and budget proposed by the Director General and transmit it to the Assemblies of the Member States with its recommendations

Regulation 2.8

The Assemblies of the Member States and of the Unions, each as far as it is concerned, shall adopt the program and budget for the following financial period after consideration of the proposed program and budget and the recommendations of the Program and Budget Committee thereon

Publication of the approved program and budget

(ii) transfers of appropriations between programs under Regulation 5.5;

(iii) flexibility adjustments made in accordance with Regulation 5.6;

(iv) activities mentioned in earlier program and budget proposals as items for which later submissions would be made;

(v) inflation, mandatory salary scale adjustments, and currency fluctuations

(b) The supplementary and revised budget proposals shall also provide:

(i) revised estimates of demand for services under the PCT, Madrid and Hague systems;

(ii) revised estimates of income, including from the above services, and miscellaneous income as defined in Regulation 3.13

Supplementary and revised program and budget proposals: review and approval

Regulation 2.11

The Director General shall prepare the supplementary and revised program and budget proposals in a form consistent with the approved budget and shall submit such proposals to the Program and Budget Committee The Program and Budget Committee shall review the proposals and transmit them to the Assemblies of the Member States with its recommendations

Rule 102.5

(a) Authorizations to incur commitments in accordance with the General Assembly decision, and that of the Assemblies of the Unions, each as far as it is concerned, for unforeseen and extraordinary expenses shall be issued by the Controller

(b) The Controller shall prepare a report for presentation by the Director General to the General Assembly, and the Assemblies of the Unions, each as far as it is concerned, on the status of all commitments relating to unforeseen and extraordinary expenses

Program and budget performance and evaluation

Regulation 2.14

The Director General shall prepare a report on program performance, based on the program structure, results frameworks, benchmarks and indicators of achievement contained in the program and budget, in accordance with the mechanism adopted by the Member States in respect of their involvement in the preparation and follow up of the program and budget of the

Organization

Rule 102.6

Program Managers shall submit to the Director General such information and at such time

as he or she shall prescribe for inclusion in the report on program performance

Regulation 2.15

The Director General shall establish a system for planning, conducting and using evaluative information for decision making

CHAPTER 3: FUNDS Financing of appropriations

Regulation 3.1

Appropriations shall be financed by contributions of Member States assessed under Regulations 3.2 and 3.3, fees derived from services provided by the Organization under the PCT, Madrid, Hague and Lisbon systems, miscellaneous income as referred to in Regulation 3.13 and such other means as the General Assembly shall decide

Amount of assessed contribution

Regulation 3.3

The amount of the annual contribution of each State is the same whether the State is a member only of WIPO, or only of one or more Unions, or of both WIPO and one or more Unions The amount of the annual contribution payable by each State in each class is calculated by multiplying the number of units of that class by the value, in Swiss francs, of one contribution unit That value is fixed by the General Assembly meeting in joint session with the Assemblies

of the contribution-financed Unions

Request for payment of assessed contributions

Regulation 3.4

The Director General shall communicate, each year, to the States members of WIPO and/or of the contribution-financed Unions the amount of their contributions for the forthcoming year on the basis of the class to which they belong

Payment of assessed contributions

Regulation 3.5

Contributions shall be considered as due and payable in full on the first day of the calendar year

to which they relate As of January 1 of the following calendar year, the unpaid balance of such contributions shall be considered to be one year in arrears

Order of payment of assessed contributions

Regulation 3.6

Payments made by a Member State shall be credited first to the working capital funds and then

to the contributions due in the order of the years for which they are due

Status of payment of assessed contributions

Regulation 3.7

The Director General shall submit to the General Assembly at each ordinary session a report on

the payment of contributions

Assessed contributions from new Member States

B FEES

Regulation 3.10

The level of the fees payable to the Organization for services rendered under the PCT, Madrid, Hague and Lisbon systems is determined by the Assembly of the corresponding Union

C VOLUNTARY CONTRIBUTIONS, GIFTS AND DONATIONS

Acceptance and purpose

Regulation 3.11

Voluntary contributions, gifts and donations, whether or not in cash, may be accepted by the Director General provided that the purposes for which the contributions are made are consistent with the policies, aims and activities of the Organization and provided that the acceptance of such contributions that directly or indirectly involve significant additional financial liability for the Organization shall require the consent of the General Assembly

(b) Voluntary contributions, gifts or donations which directly or indirectly involve additional financial liability for the Organization may be accepted only with the approval of the General Assembly

(c) Gifts or donations are to be defined and administered as voluntary contributions

D MISCELLANEOUS INCOME

Regulation 3.13

All income except:

(a) Assessed contributions by Member States,

(b) Fees derived for services provided by the Organization under the PCT, Madrid, Hague and Lisbon systems,

(c) Direct refunds of expenditures made during the financial period,

(d) Advances or deposits to funds,

(e) Interestor investment revenue,

(f) Income from the Arbitration and Mediation Center,

(g) Income from the sale of publications,

shall be classed as miscellaneous income

Regulation 3.14

Monies accepted in respect of which no purpose is specified shall be treated as miscellaneous income and reported in the financial management report of the financial period

Reimbursements of expenditures

Rule 103.2

(a) Within the same financial period, reimbursements of actual expenditures incurred may be credited to the accounts against which they were originally charged; reimbursements of actual expenditures incurred in prior financial periods shall be credited

(c) All monies received shall be deposited in an official bank account within two business days of receipt

CHAPTER 4: CUSTODY OF FUNDS

to finance general expenditure, shall be credited to this general fund

Working capital funds

Regulation 4.2

The working capital funds of the Organization and of the Paris, Berne, Madrid, Hague, IPC, Nice, PCT, Lisbon, Locarno and Vienna Unions shall be established in amounts to be determined by the Assemblies of the Member States and of the Unions, each as far as it is concerned

Regulation 4.3

The working capital funds shall be used, to the extent possible, as advances to finance budgetary appropriations that are not yet covered by available liquidity and for such other purposes as may be determined by the Assemblies of the Member States and of the Unions, each as far as it is concerned

Regulation 4.4

Advances made from the working capital funds to finance budgetary appropriations shall be reimbursed to the working capital funds as soon as and to the extent that income is available for that purpose

Trust funds and special accounts

Regulation 4.5

The purpose and limits of each trust fund and special account shall be clearly defined by the Director General Such funds and special accounts shall be administered in accordance with the present Regulations

Surpluses and deficits; Reserve Funds

Regulation 4.6

The use, other than for the covering of any deficits, of any of the reserve funds is a matter for the decision of the General Assembly of WIPO or the Assembly of the Union concerned, as the case may be

Regulation 4.7

If, after the closure of the financial period, any Union shows a surplus of income, such surplus shall be accounted for under the reserve funds, unless otherwise decided by the General Assembly or the Assembly of the Union concerned

Regulation 4.8

If, after the closure of the financial period, any Union shows a deficit, not coverable out of reserve funds, the General Assembly of WIPO or the Assemblies of the interested Unions, as the case may be, shall decide upon measures to redress the financial situation

The Controller shall designate the banks in which the funds of the Organization shall be

kept, shall establish all official bank accounts required for the transaction of the Organization’s business and shall designate those officers to whom signatory authority is delegated for the operation of those accounts The Controller shall also authorize all bank account closures The Organization’s bank accounts shall be operated in accordance with the following guidelines:

(a) Bank accounts shall be designated “official accounts of the World Intellectual Property Organization (WIPO)” and the relevant authority shall be notified that those accounts are exempt from all taxation

(b) Banks shall be required to provide promptly monthly statements

(c) Two signatures, or the electronic equivalent, shall be required on all checks and other withdrawal instructions, including electronic modes of payment

(d) All banks shall be required to recognize that the Controller is authorized to

receive, upon request or as promptly as practicable, all information pertaining to official bank accounts of the Organization

Bank signatories

Rule 104.3

Bank signatory authority and responsibility is assigned on a personal basis and cannot be delegated Bank signatories cannot exercise the approving functions assigned in accordance with Rule 105.7 Designated bank signatories must:

(a) Ensure that there are sufficient funds in the bank account when checks and other payment instructions are presented for payment

(b) Verify that all checks and other payment instructions are dated and drawn to the order of the named payee approved by an approving officer (designated in accordance with Rule 105.7)

(c) Ensure that checks and other banking instruments are properly safeguarded and that when they are obsolete they are destroyed in accordance with Rule 106.13

Exchange of currencies

Rule 104.4

Officers responsible for the operation of WIPO bank accounts shall proceed to exchange all payments received in currencies other than the Swiss franc into Swiss francs except when the other currencies are necessary for the transaction of official business of the Organization in the foreseeable future Policies and procedures for exchange of currencies shall be established in detail through appropriate Office Instructions

Remittances to liaison offices

Rule 104.5

The liaison offices of the Organization shall obtain their funds through remittances from Headquarters In the absence of a special authorization from the Controller, those remittances shall not exceed the amount required to bring cash balances up to the levels necessary to meet the recipient liaison office’s estimated cash requirements for the next two and a half months

Rule 104.7

Officers to whom cash advances are issued shall be held personally accountable and financially liable for the proper management and safekeeping of cash so advanced and must be in a position to account for these advances at all times They shall submit monthly accounts unless otherwise directed by the Controller

Payments

Rule 104.8

(a) All payments shall be made by check, by wire transfer or by electronic funds transfer except to the extent that cash payments, or their equivalent, are authorized by the Controller

(b) Payments shall be recorded in the accounts as at the date on which they are made, that is, when the check is issued, transfer is effected or cash, or its equivalent, is paid out (c) Except where a paid check is returned by the bank or a debit advice is received from the bank, a payee’s written receipt shall be obtained for all payments

Reconciliation of bank accounts

Rule 104.9

Every month all financial transactions, including bank charges and commissions, must be reconciled with the information submitted by banks in accordance with Rule 104.2 This reconciliation must be performed or validated by an officer playing no actual part in the receipt or payment of funds

investments

Regulation 4.11

The Director General may make long-term investments of monies standing to the credit of the Organization in accordance with the Organization’s investment policy, as approved by the Member States, and shall inform the Program and Budget Committee regularly of any such investments In this regard, the Director General may seek the advice of an Advisory Committee on Investments composed of members appointed by the Director General including from persons outside the Organization having substantial experience in the financial sector

Rule 104.10

(a) The authority to make and prudently manage investments in accordance with the investment policy approved by the Member States under Regulations 4.10 and 4.11, is delegated to the Controller

(b) The Controller shall ensure, including by establishing appropriate guidelines, that

funds are held in such currencies and invested in such a way as to place primary emphasis on minimizing the risk to principal funds while ensuring the liquidity necessary to meet the Organization’s cash-flow requirements In addition to these criteria, investments

as well as the currencies in which they are denominated shall be selected by the Controller on the basis of the investment policy approved by the Member States under Regulations 4.10 and 4.11

Rule 104.11

Investments shall be recorded in a ledger which shall show all the relevant details for each investment, including, for example, face value, cost, date of maturity, place of deposit, proceeds of sale and income earned

The Controller shall prepare all proposals for external borrowing which shall be submitted

by the Director General, through the Program and Budget Committee, to the General Assembly, for its approval

CHAPTER 5: UTILIZATION OF FUNDS

A APPROPRIATIONS

Authorizations

Regulation 5.1

The appropriations approved by the Assemblies of the Member States and of the Unions, each

as far as it is concerned, shall constitute an authorization to the Director General to incur obligations and make payments for the purposes for which the appropriations were approved and up to the amounts so approved, except as provided for in Regulations 5.5 and 5.6

Available period

Regulation 5.2

Appropriations shall be available for obligation during the financial period to which they relate

Regulation 5.3

Expense accruals shall remain available for twelve months following the end of the financial period to which they relate, to the extent that they are required to cover payments in respect of goods supplied and services rendered in the financial period

Regulation 5.4

At the end of the twelve-month period provided for in Regulation 5.3 above, any expense accruals of the financial period in question shall be cancelled or, where the obligation remains a valid charge, transferred as an obligation against current appropriations

Transfers between appropriations

Regulation 5.5

The Director General may make transfers from one program of the program and budget to another for any given financial period, up to the limit of five per cent of the amount corresponding to the biennial appropriation of the receiving program, or to one per cent of the total budget, whichever is higher, when such transfers are necessary to ensure the proper functioning of the services All transfers arising in the first year of the financial period shall be reflected in the revised budget proposals Those arising in the second year shall be reported to the next sessions of the Program and Budget Committee and the General Assembly

Flexibility adjustments

Regulation 5.6

(a) In the implementation of the program and budget, the Director General shall have the flexibility to make upward or downward adjustments to the resources appropriated for the operations of the PCT, Madrid and Hague systems, and for WIPO programs providing administrative support to these operations

(b) These adjustments shall be made in accordance with the methodology and formula(e) approved by the respective assemblies of the PCT, Madrid and Hague Unions, and presented

in the proposed program and budget for the relevant financial period

Commitments against appropriations for future financial periods

Administration of appropriations

Regulation 5.8

The Director General shall:

(a) Establish, with the advice of the Program and Budget Committee, the financial rules

of the Organization in order to ensure effective and efficient financial management and the exercise of economy

(b) Cause all payments to be made on the basis of supporting vouchers and other documents which ensure that the services or goods to be paid for have been received and that payments have not previously been made

(c) Designate the officers who may receive monies, incur obligations and make payments on behalf of the Organization

(d) Maintain an internal financial control which shall provide for an effective current examination and/or review of financial transactions in order to ensure:

(i) the regularity of the receipt, custody and disposal of all funds and other financial resources of the Organization;

(ii) the conformity of obligations and expenditures with the appropriations or other financial provisions approved by the General Assembly or with the purposes and rules relating to specific trust funds;

(iii) the effective, efficient and economic use of the resources of the Organization

B COMMITMENTS, OBLIGATIONS AND EXPENDITURES

Authority and responsibility

Regulation 5.9

Obligations for the current financial period or commitments for current and future financial periods shall be incurred only after allocations or other appropriate authorizations have been made in writing under the authority of the Director General

Rule 105.2

The utilization of all funds requires the prior authorization of the Controller The Controller may determine the maximum amount of the appropriations that it would be prudent to make available for allocation taking into account the prospects of payment of assessed contributions, the likely level of income from fees, or any other relevant factors

Rule 105.3

Authorizations from the Controller may take the form of:

(a) An allocation of funds or other authorization issued to a Program Manager to plan activities and to initiate action to commit, obligate and expend specified funds for specified purposes during a specified period

(b) A staffing table authorization issued jointly to a Program Manager and the Director of the Human Resources Management Department (HRMD) to enable the Director of HRMD to fill authorized posts based on requests initiated by the Program Manager

Checks and balances

Rule 105.4

Notwithstanding bank signatory functions assigned in accordance with Rule 104.3, all commitments, obligations and expenditures require at least two approvals, in either conventional or electronic form, as detailed in Rules 105.5 and 105.6 below

Program Managers

Rule 105.5

(a) Program Managers are responsible for planning, initiating and managing the effective and efficient utilization of resources as approved by the Member States and within the amount allocated by the Controller for the purposes covered by the approval of the Member States for the relevant program In particular, they are accountable for the delivery of expected results indicated in the approved program and budget or, in the case

of extrabudgetary resources, the relevant approval However, pre-encumbrances, obligations and expenditures initiated by Program Managers shall be reviewed for compliance with relevant policies and procedures, by appropriate officers designated by the Controller (“certifying officers”) as per Rule 105.6 below

(b) Program Managers are designated by the Director General on a personal basis However, a Program Manager should designate an alternate[s]

Certifying officers

Rule 105.6

(a) Certifying officers are responsible for ensuring that the utilization of resources proposed by Program Managers, including posts, is in compliance with the Financial Regulations and Rules, the Staff Regulations and Rules of the Organization and the Office Instructions issued by the Director General

(b) Certifying officers are designated by the Controller Certifying authority and responsibility is assigned on a personal basis and cannot be delegated A certifying officer cannot exercise the approving functions assigned in accordance with Rule 105.7

(b) Approving officers are designated by the Controller

(c) Approving authority and responsibility is assigned on a personal basis and cannot

be delegated An approving officer cannot exercise the certifying functions assigned in accordance with Rule 105.6 or the bank signatory functions assigned in accordance with Rule 104.3

Establishment and amendment of obligations

Rule 105.8

(a) Apart from the employment of staff against an authorized staffing table and consequential commitments under the Staff Regulations and Rules, no undertaking, including by contract, agreement or purchase order shall be entered into until the appropriate credit(s) has (have) been reserved in the accounts (“pre-encumbrance”) This shall be done through the recording of commitments against which obligations shall be recorded Relevant payments or disbursements against duly recorded obligations shall be recorded as expenditure An obligation shall be recorded in the accounting records as accrued during the period set forth in Regulation 5.3 if the goods have been received or services rendered, until such point as it is liquidated or cancelled in accordance with Regulation 5.4

(b) The Controller may establish a threshold below which pre-encumbrance shall not be required

(c) The Controller shall establish appropriate procedures to be followed in cases where the cost of relevant goods or services has, for whatever reason, increased in the time that elapses between the establishment of an obligation and the processing of final payment

Review, reobligation and cancellation of obligations

Rule 105.9

(a) Outstanding obligations must be reviewed periodically by the responsible Program Manager If an obligation is determined to be valid but cannot be liquidated during the period set forth in Regulation 5.3, the provisions of Regulation 5.4 shall, as appropriate,

be applied Obligations that are no longer valid shall be reduced or cancelled from the accounting records accordingly

(b) When any obligation previously recorded in the accounting records is, for any reason, reduced (other than by payment) or cancelled, the certifying officer shall accordingly ensure that appropriate adjustments are recorded in the accounting records

The Director General may make such ex gratia payments as are deemed to be necessary in the

interest of the Organization, provided that a summary statement of such payments for the calendar year shall be included in the annual financial statements of the Organization The total amount of such payments shall not exceed 20,000 Swiss francs in any given financial period

Rule 105.11

Ex gratia payments may be made in cases where, although in the opinion of the Legal

Counsel there is no clear legal liability on the part of the Organization, the moral obligation

is such as to make payment desirable, in the interest of the Organization A summary

statement of all ex gratia payments for the calendar year shall be included in the annual

financial statements of the Organization The approval of the Controller is required for all

ex gratia payments